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ZCSMBA cautions over minimum wage revision

ZCSMBA cautions over minimum wage revision
By Kabanda Chulu
Thu 20 Oct. 2011, 08:20 CAT

THE GOVERNMENT'S move to revise the current minimum wage should be done in an open and transparent manner whereby various economic sectors should be considered on the basis of its ability to pay, says ZCSMBA.

Commenting on the Presidential directive to the labour ministry to consider the issue of minimum wages, Zambia Chamber of Small and Medium Business Associations (ZCSMBA) vice-chairperson Dorothy Mulwila said the government should consider the various sectors and categorise them accordingly with the size of business being a major factor.

"We acknowledge government efforts in providing decent wages to Zambian citizens but it is important to remember that minimum wage across all sectors were revised and effected in January 2011 and the industry is still trying to adjust and cope with the cost and this has led to some industries to downsize labour force," Mulwila said.

"Hence it is our concern that further adjustment to the minimum wage will have both short and long-term effect on employment as the industry will not afford to carry on with the additional costs of doing business so any move to revise the current minimum wage should be done in an open and transparent manner in consultation with the private sector."

She said there was an impending danger of a blanket cover of minimum wage having a detrimental effect on the micro, small and medium enterprises (MSMEs) if the sector was not considered on the basis of ability to pay.

"MSMEs will not be able to bear the increase in the cost of doing business and may be forced out of business resulting in an increase in unemployment, thereby affecting the same persons whose livelihood was meant to improve. And in the absence of collective bargaining, many MSMEs may no longer be able to contribute effectively to the economy as engines of growth," said Mulwila.

"Some MSMEs are already struggling with the current minimum wage which when allowances are included is more than K419,000 and there are already cases of MSMEs that are no longer in operation due to the adjustments that had to be made when the current minimum wages came into effect in January 2011."

Labels: MINIMUM WAGE, SALARIES, ZCSMBA

posted by MrK @ 2:39 PM